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Source: PRESS RELEASE, 3/22/12
Editor's note: U.S. Sen. Richard Burr (NC) also voted in favor of the bill.
U.S. Senator Kay R. Hagan (NC) today voted for the Jumpstart Our Business Startups (JOBS) Act, H.R. 3606. The bill, which is aimed at easing the ability of small and emerging companies to raise capital, passed the Senate by a vote of 73 to 26.
“Small businesses are the backbone of our economy, and ensuring that they can expand and hire workers is key to a full economic recovery,” said Hagan. “North Carolina continues to face an unemployment rate over 10 percent, and jobs are my number one priority. The bill we passed today will help our small business owners who are trying to grow their companies. This legislation enjoyed strong bipartisan support on both sides of the Capitol, and while I am disappointed that the bill does not include a reauthorization of the Export-Import Bank that would help even more small business owners, I understand that bipartisan compromise is necessary to make progress in Congress. I will continue working with my colleagues on both sides of the aisle to reauthorize the Export-Import Bank.”
The bill is a package of several separate pieces of legislation designed to ease regulations on small businesses and start-up companies. Hagan is a co-sponsor of the Regulation A update.
· IPO On-Ramp – The bill creates a new category of “emerging growth companies” and provides those companies with a transitional 5-year on ramp before requiring full compliance with certain public company obligations.
· Regulation A – Updates Regulation A by increasing the offering ceiling from $5 million to $50 million, while improving transparency.
· General Solicitation – Removes restrictions on general solicitation of unregistered securities and broadens the pool of potential investors in private companies.
· Crowdfunding – Updates securities laws to allow entrepreneurs and start-up companies to raise capital through online platforms and social media.
· 500-Shareholder Rule – Raises the shareholder threshold above which companies must begin public reporting.
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